AWB market report

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Wheat futures were traded higher yesterday. Wheat/Corn spreads narrowed which led to a slight recovery in wheat prices. Some significant sales have occurred with Egypt's GASC buying 120,000 of Ukraine and Romanian wheat for September shipment .

Iraq bought 200,000 t wheat, 150,000t from Australia and 50,000t from Canada. Rain in the Black Sea could trim their production forecast but combined with Russia, Ukraine and Kazakhstan are still expected to increase production by 36% to 87 million tonnes and exports by 22% to30 million tonnes. World production in the northern hemisphere is thought to be topping out mainly due to demand from China and Brazil.Chicago wheat for Sept 2013 is 5 ¼ cents higher at 650 ½ US cents a bushel. Corn futures traded higher last night. China has approved there first shipment of GMO corn from Argentine which may provide a cheaper option for them. Some bargain buying is thought to have taken place which helped to push the spread slightly higher. The US EPA has maintained their target for biofuel for 2013 but is expected to reduce volumes in 2014.

Chicago corn for Sept 2013 is 3 cents higher at 472 ¼ US cents a bushel.

Canola traded lower over night after the long weekend. Farmers were noted sellers trying to lock in prices as they expected them to go lower. Forecasts are looking good for crop development in Western Canada. Winnipeg Canola for Nov 2013 is $18.10c lower at $475.50 Canadian dollars per tonne.

The Australian dollar is currently trading at 0.8982 USD.

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